Hotel Development - From Concept to Action

There are few business activities as complex, and atdevelopment product. The latter appears to make
the same time, as financially rewarding, as hotelthe most sense, that is, to look for land to allow the
development. As in any endeavor of this nature, inbuilding of the hotel and its amenities of a product
addition to having the idea to develop, which meansthat you have in mind to begin with. The reason for
literally, from the American Heritage Dictionary, "tothis is threefold:
bring it to being", "to expand or to realize the1. Based on the opening two paragraphs, you and/or
potential", or" to convert to a specific purpose, suchyour partners have developed an idea of what you
as a tract of land", one must have, or acquire, theare trying to do even if it is an incomplete vision. You
expertise in the finished product to be developed.already have in mind the area and a rough
For an individual or partnership, there is more thanclassification, city, suburbs, highway, and what the
one way to acquire the product expertise. The mostgenerators are, business travelers, tourists, university
obvious is to start a partnership where one or morestudents, etc.
of the partners have hotel development experience2. To finance, and succeed in the hotel development
or hotel operating expertise. The latter experience isbusiness, you will have to have a franchise. There are
especially helpful when considering the project, inno more "Dew Drop Inns" or other complete
regards to what type of hotel would be built,independents being built, due to brand awareness
business oriented, tourist location, resort, full service,among the traveling public, offering service and
limited service, high-rise, low-rise, high density orsafety assurances in every price category. So you
otherwise, to name a few.need to have an idea of what franchises are out
A hotel encompasses so many different types andthere and at least their rough site requirements.
kinds of properties, that there is no single prototype3. Every hotel franchisor has a complete prototype
to define the concept, except that it is primarily aof their hotel development property, together with
facility that provides temporary overnight lodging. Itthe site requirements to accommodate them. So to
also may or may not include amenities such as foodlook for a site without knowing what you are looking
and beverage services, vehicle parking, and a host offor is counter- productive. Zero in on the sites that
other services, depending on the type. This widefit your franchise requirement, and develop and build
diversity is precisely why the trade association forfrom the franchisors prototype.
hotels has changed their name from the AmericanSo there you have it. Visit online with Google or
Hotel Association, to the American Hotel and Motelother search engines to find a list of hotel
Association, and then to today's name, the Americandevelopment franchisors. Contact those of your
Lodging Association.choice asking each of them for a UFOC (Uniform
So, where to start? With the chicken or the egg, findFranchise Offering Circular).
a tract of land near hotel business generators toConsider all of their qualifications, conditions and fees
support a hotel and then decide what kind of hotelas well as the type of hotel property to develop,
would fit on that land, bearing in mind parking, oncheck the area competition, and begin you search
grade, a subterranean garage, etc., or have awith established parameters from several franchisors
particular kind of hotel development product in mindfor your site.
and look for a site to accommodate such hotel